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Polen Capital on LendingTree (TREE): “We Believe its Long-Term Picture is still Positive”

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Jose Karlo Mari Tottoc
·3 min read
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Polen Capital Management, a value-driven, concentrated, long-term investment management firm, published its ‘Polen U.S. Small Company Growth’ fourth-quarter 2020 Investor Letter – a copy of which can be downloaded here. A gross return of 29.14% was recorded by the fund for the Q4 of 2020, slightly below its Russell 2000 Growth benchmark that delivered a 29.61% return. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Polen Capital Management, in their Q4 2020 investor letter, mentioned LendingTree, Inc. (NASDAQ: TREE) and shared their insights on the company. LendingTree, Inc. is a Charlotte, North Carolina-based online lending marketplace that currently has a $2.9 billion market capitalization. Since the beginning of the year, TREE delivered a -19.46% return, while its 12-month gains are up by 47.41%. As of April 01, 2021, the stock closed at $220.51 per share.

Here is what Polen Capital Management has to say about LendingTree, Inc. in their Q4 2020 investor letter:

"For the fourth quarter, most of our detractors were also stocks that were up for the year, with no notable developments in the fourth quarter except the general market rotation away from early COVID winners.

LendingTree, an online lending marketplace, experienced mixed results due to the pandemic. Some of the company’s segments posted outsized gains, but others were challenged. Fortunately, LendingTree is data-driven and nimble and has shown improvement more recently. We believe its long-term picture is still positive as it has the potential to create a large and growing lead generation marketplace for financial services products."

Our calculations show that LendingTree, Inc. (NASDAQ: TREE) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, LendingTree, Inc. was in 26 hedge fund portfolios, compared to 20 funds in the third quarter. TREE delivered a -19.46% return in the past 3 months.

The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

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Disclosure: None. This article is originally published at Insider Monkey.